Draft

ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION

#11-4-660, 4th Floor, Singareni Bhavan, Red Hills, Hyderabad 500 004
Phone Nos. (040)23397625/381/399 Fax No.(040)23397378/489
website: www.aperc.gov.in

Andhra Pradesh Electricity Regulatory Commission

Transmission Licence Regulation, 2017
Regulation No. ----- of 2017

In exercise of the powers conferred under Section 181 read with Section 15, 16 and 18 of
the Electricity Act, 2003 (36 of 2003) and all powers enabling it in that behalf, the Andhra
Pradesh Electricity Regulatory Commission (APERC) hereby makes the following
Regulations, namely:
CHAPTER 1
PRELIMINARY

1. Short Title, Extent and Commencement

a) This Regulation shall be called the Andhra Pradesh Electricity Regulatory
Commission (APERC) Transmission Licence Regulation, 2017.
b) This Regulation extends to the whole State of Andhra Pradesh.
c) This Regulation shall be applicable to the transmission licensee which was granted
Licence under Andhra Pradesh Electricity Reform Act, 1998 in the state of Andhra
Pradesh.
d) This Regulation shall come into force on the date of its publication in the Andhra
Pradesh Gazette.

2. Definitions and Interpretation

(1) In this Regulation, unless the context otherwise requires: -

a) Accounting Statement means for each financial year, accounting

statements comprising a profit and loss account, a balance sheet and a
statement of sources and application of funds, together with notes thereto
and such other particulars and details and in the manner as the
Commission may prescribe from time to time and showing the amounts of
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 any revenue, cost, asset, liability, reserve or provision, which has been
either:
(i) Charged from the licenced Business to any other business or vice
versa together with a description of the basis of that charge; or
(ii) Determined by apportionment or allocation between the licenced
Business and any other business of the transmission licensee together
with a description of the basis of the apportionment or allocation.
(iii) The Accounting Statement shall show separately the requirements
mentioned above for the licenced business and other business(es) in
which the transmission licensee may engage.
b) Act means The Electricity Act, 2003 (36 of 2003);
c) Agreement means the agreement, contract, memorandum of
understanding, or any other covenant on any aspect relating to the intra-
State transmission of electricity, entered into between the transmission
licensee, the long-term customers and the State Transmission Utility (STU)
or the Deemed licensee;
d) Annual Accounts means the accounts of the transmission licensee
prepared in accordance with the provisions of the Companies Act, 2013,
where applicable, and/or in accordance with standard accounting practice
in any other case.
e) Applicant means a person who has made an application for a grant
of licence for intra-state transmission of power;
f) Application means the application made for grant of licence or, for
amendment of licence, as the case may be, and includes annexures,
enclosures to such application;
g) Area of Activity or Area of licence means the area of activity stated in
the transmission licence within which the transmission licensee is
authorised to operate and maintain transmission lines;
h) Auditors means the transmission licensees auditors, and if the
transmission licensee is a company, auditors holding office in accordance
with the requirements of the Companies Act, 2013 (Act No. 18 of 2013),
as amended from time to time;
i) Bid process coordinator means an agency notified by the Central
Government for coordinating the process of inviting bids for procurement of
services for inter-State transmission of electricity in accordance with the
guidelines for competitive bidding;
j) Business Plan means a plan in relation to the licenced Business,
containing all the details specified in Clause 30;
k) Central Transmission Utility means the Central Transmission Utility
notified by the Central Government under sub-section (1) of Section 38 of
the Act;
l) Commission means the Andhra Pradesh Electricity Regulatory
Commission

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m) Conduct of Business Regulations means the Andhra Pradesh Electricity
Regulatory Commission (Conduct of Business) Regulations, 1999, as
amended from time to time and includes any statutory re- enactment
thereof;
n) "Deemed licensee means a person, who is deemed to be a licensee for
inter-State transmission of electricity under any of the provisos to Section
14 of the Act;
o) Empowered Committee means the Empowered Committee formed by
the State Government under the guidelines for encouraging competition in
Development of transmission projects;
p) Grid Code means the Grid Code specified by the Commission under
clause (h) of sub-section (1) of Section 86 of the Electricity Act and includes
the Indian Electricity Grid Code as applicable and in force on the date of
commencement of this Regulation;
q) Guidelines for competitive bidding means the guidelines issued by the
Central Government from time to time in terms of Section 63 of the Act for
development of transmission projects;
r) Licence means a licence granted by the Commission under Section 14 of
the Act to a person to undertake intra-State transmission of electricity;
s) Licenced Business means the business of transmission of electrical
power in the Area of licence as authorised under the transmission licence;
t) Licensee means a person who has been granted a licence, and
includes a deemed licensee;
u) "Long-term customer means a person who has been granted long-term
access and includes a person who has been allocated State sector
generation that is electricity supply from a generating station owned or
controlled by the State Government;
v) Major Incident means an incident associated with the transmission of
electricity, which results in a significant interruption of service, substantial
damage to equipment, or loss of life or significant injury to human beings, or
as otherwise directed by the Commission and shall also include any other
incident which the Commission expressly declares to be a Major Incident;
w) Open Access means the non-discriminatory provision for the use of
transmission lines or transmission system or associated facilities with such
lines or system by any licensee or consumer or a person engaged in
generation in accordance with the Act and the regulations specified by the
Commission;
x) Other Business means any business of a transmission licensee other than
the licenced Business of intra-state transmission, which the transmission
licensee engages in for the optimum utilization of its assets;
y) Project means an element or elements of the intra -State transmission
system included in the transmission plan prepared by the State
Transmission Utility (STU) and approved by the Commission;
z) Reform Act means the Andhra Pradesh Electricity Reform Act, 1998.

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 aa) Regional Power Committee means a committee established by resolution
by the Central Government for a specified region for facilitating the
integrated operation of the power systems in that region;
bb) Secretary means the Secretary of the Andhra Pradesh Electricity
Regulatory Commission;
cc) Standards means the technical standards, safety requirements and grid
standards specified by the Central Electricity Authority under Section 73 of
the Act;
dd) State means the State of Andhra Pradesh.
ee) State owned or controlled company means a company in which not less
than fifty one percent of the paid-up share capital is held or the majority of
directors on whose Board are appointed, by the Central Government, or by
any State Government or Governments, or by any Government company or
companies, or by the Central Government and any State Government or
Governments and any Government company or companies;
ff) State Transmission Utility (STU) means the State Transmission Utility
notified by the State Government under sub-section (1) of Section 39 of the
Act;
gg) Transmission Licence means a licence granted to establish or operate
transmission lines in the area specified in the licence, and Transmission
licensee shall be construed accordingly;
st
hh) Year means a calendar year or a period of twelve months from 1 April
st
of a calendar year to 31 March of the following calendar year, as approved by
the Commission from time to time;
Words and expressions used and not defined in this Regulation but defined in the Act
shall have the meanings assigned to them in the Act. Expressions used herein but not
specifically defined in this Regulation or in the Act but defined under any law passed
by a competent legislature and applicable to the electricity industry in the state
shall have the meaning assigned to them in such law.

(2) Interpretation
(1) In interpretation of this Regulation, unless the context otherwise requires:
(2) words in the singular or plural term, as the case may be, shall also be deemed
to include the plural or the singular term, respectively;
(3) the terms include or including shall be deemed to be followed by without
limitation or but not limited to regardless of whether such terms are followed
by such phrases or words of like import;

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 (4) the headings are inserted for convenience and may not be taken into
account for the purpose of interpretation of this Regulation;
(5) references to the statutes, regulations or guidelines shall be construed as
including all statutory provisions consolidating, amending or replacing such
statutes, regulations or guidelines, as the case may be, referred to.
(3) Review
This Regulation may be reviewed by the Commission from time to time, inter alia
for securing harmonization with the regulation of open access and/or to cater to
the needs of developing power markets, in accordance with Section 66 of the Act.

CHAPTER - 2
SELECTION OF PROJECT AND IMPLEMENTING AGENCY

3. Selection of Projects
The Empowered Committee shall identify the projects included in the transmission
plan to be developed under the guidelines for competitive bidding issued by Government of
Andhra Pradesh.

4. Project Developer
(1) In case of the projects identified by the Empowered Committee for development
under the guidelines for competitive bidding, selection of the project developer shall
be made in accordance with the procedure laid down under these guidelines.
(2) The projects included in the transmission plan and not identified by the Empowered
Committee to be developed under the guidelines for competitive bidding may be
developed by the State Transmission Utility or other deemed licensee, or a state
owned or controlled company identified as project developer.
CHAPTER 3

GRANT OF LICENCE

5. Proceedings before the Commission:

All proceedings under this Regulation shall be governed by the Andhra Pradesh
Electricity Regulatory Commission (Conduct of Business) Regulations, 1999,
including amendments and statutory re-enactments thereof.

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6. Eligibility for Grant of Licence
(1) No person shall be eligible for grant of transmission license unless it is
(a) selected through the process under the guidelines for competitive bidding issued
by Ministry of Power, Government of Andhra Pradesh.
Or
(b) a state owned or controlled company identified as a project developer, or
any other person identified as project developer in pursuant to the provisions of
the Act or any other guidelines/initiatives of the Government of A.P or
Government of India.
(c) a generating company including a Captive Generating Plant which has established
a dedicated transmission line (s), and intends to use such dedicated transmission
line(s) as main transmission line(s) and as part of the Intra-State Transmission
System (InSTS):
7. Procedure for Grant of Licence

(1) The application for grant of licence for intra-state transmission shall be made to
the Commission in Form-I appended to this Regulation in three (3) sets and shall be
accompanied by application fee as may be specified by the Commission. Such fee
shall be payable by Bank Draft/Pay Order drawn in favour of Secretary, Andhra
Pradesh Electricity Regulatory Commission.
Upon receipt of the application, the Secretary shall send an acknowledgement to the
Applicant at the address stated in the application including the date of receipt and
the reference number.
(2) In case of the person selected for implementation of the project in
accordance with the guidelines for competitive bidding, the application shall also
contain such additional information, as may be required under these guidelines.
(3) The applicant shall furnish a list of all the local authorities (viz. Gram Panchayat,
Taluka Panchayat, District Panchayat, Municipal Area) vested with the
administration of any portion of the proposed Area of licence through which the
proposed transmission line will pass.

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 (4) The applicant shall furnish an approximate statement describing any land which the
applicant proposes to acquire for the purpose of the licenced Business and the
means of such acquisition.
(5) The applicant shall enclose a detailed description of the existing transmission
network within the State in the licensees proposed Area of Activity, including the
single line diagram of the transmission network as well as an executive summary of
the existing facilities, details of other equipment / apparatus in the area including
number and details of sub-stations, details of power transformers, a description of
the metering mechanism and other relevant details of the system including details
of ownership of the said facilities.
(6) The application shall be supported by affidavit of the person acquainted with the facts
stated therein.
8. Scrutiny of Application and Calling for Additional Information

(1) The Secretary may, upon scrutiny of the application, require the Applicant to
furnish, as far as practicable, such additional information or documents as may
be considered necessary for the purpose of dealing with the application, within a
period of fifteen (15) days from the date of receipt of the application.
(2) If the Secretary finds that the application and the accompanying documents are
complete in all respects and after the Applicant has complied with the procedure
prescribed for validly submitting an application, the Secretary shall certify that
the application is complete for being considered for grant of transmission licence
in accordance with the procedures provided in the Act and this Regulation.
(3) Before making an application, the applicant shall serve a copy of the application
on each of the long-term customers of the project and shall submit evidence to
that effect along with the application and shall also post the complete
application along with annexures and enclosures on its web site, or where it
does not have such website, on any other website, to provide access to the
application through the Internet, the particulars of which shall be given in the
application.

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 (4) The application shall be kept on the web site till such time the licence is issued or
the application is rejected by the Commission.
(5) Immediately on making the application, the applicant shall forward a copy of the
application to the State Transmission Utility and the State Transmission Utility
shall acknowledge receipt of the application. The application along with
annexures and enclosures thereto, shall also be submitted to the Commission
and the STU on compact disc (CD) after taking necessary measures for data
protection, virus detection etc.
9. Public notice of Application

(1) The applicant shall, within 7 days after making the application, publish a notice
of its application in Form-II attached to this regulation, in at least one issue each of
a daily newspaper in English language and two daily news papers in Telugu
language, having wide circulation in the area of transmission where an element
of the project or a long-term customer is situate.
(2) As far as possible, within 7 days of receipt of the application, the Secretariat of
the Commission shall convey defects, if any, if noticed on preliminary scrutiny of
the application for rectification and the defects conveyed shall be rectified by
the applicant in such time as may be indicated in the letter conveying the defects.
(3) In the notice published in the newspapers under clause (9) it shall be indicated
that the suggestions and objections, if any, on the application, may be filed
before the Secretary, Andhra Pradesh Electricity Regulatory Commission, with a
copy to the applicant, by any person, including the long-term customers, within
30 days of publication of the notice.
Provided that no objection shall be so considered unless it is received
before the expiration of thirty days from the date of the publication of such
notice as aforesaid;
(4) The applicant shall within 15 days from the date of publication of the notice as
aforesaid submit to the Commission on affidavit the details of the notice
published, indicating the newspapers in which the notice has been published and

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 the date and place of their publication and shall also file before the Commission
the relevant copies of the newspapers, in original, in which the notice has been
published.
10. Recommendations of STU
(1) The State Transmission Utility shall send its recommendations, if any, to the
Commission on the proposal made in the application within a period of thirty
days from the date of receipt of application by it:
Provided that copy of the recommendations, if any, made by the State
Transmission Utility shall always be forwarded to the applicant;
Provided further that the recommendations of the State Transmission Utility shall
not be binding on the Commission.
(2) The applicant may file its comments, duly supported by an affidavit, on the
recommendations made by the State Transmission Utility and the suggestions
and objections, if any, received from any person in response to the public notice
published by him, within 45 days from the date of publication of notices in the
newspapers, with an advance copy to the State Transmission Utility.
11. Hearing of Application and Grant of Licence / Rejection
(1) After compliance by the Applicant of all the conditions pertaining to the
submission of documents, obtaining of permissions and publication of notices
and after the expiry of the time for receiving objections, the Commission may,
if it deems fit, proceed to list the application for regular hearing.
(2) After hearing of the application, if conducted, the Commission may after
considering the suggestions and objections received in response to the public
notice published by the applicant and the recommendations, if any, of the State
Transmission Utility may, propose to grant the licence or for reasons to be
recorded in writing, reject the application. Provided, however, that the
Commission shall in no event reject an application without giving the Applicant
an opportunity of being heard, either by requiring the Applicant to file responses
in writing or by conducting an oral hearing.

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(3) Before granting a licence, the Commission shall publish a notice of its proposal
in at least one issue each of a daily newspaper in English language and two daily
news papers in Telugu language, having wide circulation, as the Commission
may consider appropriate, stating the name and address of the person to whom
it proposes to grant the licence, details of the project for which it proposes to
grant licence, location or route of the elements of the project, in addition to any
other details that the Commission may consider appropriate, to invite further
suggestions and objections on its proposal.
(4) The Commission may after consideration of the further suggestions and
objections, if any, received in response to the public notice as aforesaid, grant
licence or for reasons to be recorded in writing, reject the application if such
application is not in accordance with the provisions of the Act, the rules or
regulations made there under or any other law for the time being in force or for
any other valid reason.
(5) The licence shall be in the form specified in Form-3 of this Regulation. Provided
that the Commission may add to alter or amend the form specified for a licence
as it may in its discretion deem necessary.
(6) The Commission may before granting licence or rejecting the application provide
an opportunity of hearing to the applicant, the State Transmission Utility, the
long-term customers, or the person who has filed suggestions and objections, or
any other person:
Provided further that the applicant shall always be given a reasonable
opportunity of being heard before rejecting the application.
(7) The Commission shall within 15 days of making the order to grant the licence,
send a copy of the licence to the State Government, the Central Electricity
Authority, the Central Transmission Utility, the State Transmission Utility, the
applicant and the long-term customers.
(8) When the Commission has approved a licence, the Secretary shall inform the
Applicant of such approval and of the form in which it is proposed to grant the

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 licence and the conditions to be satisfied by the Applicant including the fees
to be paid for the grant of licence within fifteen (15) days.
(9) Where the Commission has decided to refuse the application, the Secretary
shall inform the Applicant of such refusal within fifteen (15) days enclosing a
copy of the reasoned order of the Commission in support of such refusal.
(10) If the Applicant is willing to accept the licence with the modifications, changes
or additions and subject to such other terms and conditions as the Commission
directs under sub-clause (b) above, the applicant shall acknowledge acceptance
to the Commission within fifteen (15) days of receipt of the approval from
the Commission.
12. Term of Licence

(1) (a) The licence shall commence from such date as the Commission may specify.
(b) The licence shall be valid for a period of twenty-five years from the date of its
commencement unless it is revoked by the Commission.
(2) If the useful life of the transmission asset for which licence has been issued extends
beyond the period of 25 years, the Commission may consider on merit of each case to
grant licence for another term for which the licensee may make an application in
accordance with Regulation 7 two years before the expiry of the initial period of
licence:
Provided that when the licensee does not make an application for grant of licence
beyond the initial period of 25 years, the Commission may, to protect the interest of
the consumers or in public interest, issue such directions or formulate such schemes
as it may deem necessary for operation of the transmission assets for the remaining
part of its useful life.
(3) Where the tariff of the transmission assets has been determined by the Commission
under Section 62 of the Act, the tariff of such assets beyond the period of 25
years shall be determined in accordance with the tariff regulations applicable at
that point of time:

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 (4) Where the Request for Proposal (RFPs) for the projects have been issued or the
projects have been awarded on the basis of competitive bidding under Section 63 of
the Act on the date of notification of these regulations, the tariff of such
transmission assets beyond the initial period of licence shall be determined in
accordance with the following guidelines:
(a) For computation of Return on Equity, equity base shall be 30% of the Gross
Block or the actual equity invested in the project as per balance sheet as at the
end of 25th year whichever is lower, subject to prudence check by the
Commission;
(b) Other financial and technical norms i.e. Return on Equity, Interest on Loan,
O&M Expenses, Interest on working capital, target availability, incentive etc.
shall be considered on the basis of norms of tariff prevalent during the
period in which the initial period of licence is due to expire;
(5) For all future projects to be developed through competitive bidding, the bidders
shall be required to quote the tariff upto 35th year from date of commercial
operation which shall be considered for bid evaluation:
Provided that in case the licence is granted for another term, the tariff for the
extended period upto 35th year shall be payable on the basis of the rate quoted at the
bidding and adopted by the Commission for the respective year of operation.
(6) In case the transmission licensee covered under clauses (4) and (5) of this
regulation decides to undertake renovation & modernization of the transmission
system after the initial period of licence, it shall make an application for approval of
the cost of renovation and modernization alongwith the application for grant of
fresh licence, which shall be considered by the Commission in accordance with the
prevalent norms.
13. Deposit of maps
When a transmission licence has been granted, four (4) sets of maps showing the
route of the transmission line along with locations and with such details as the
Commission may specify, shall be signed and dated to correspond with the date of
the notification of the grant of the licence. One set of such maps shall be deposited
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 with the Commission, one set shall be deposited with the STU and the other two
sets shall be deposited with the Transmission licensee.
14. Deposit of printed copies of Licence:
(1) Every person who is granted a licence shall within thirty days ( 3 0 ) of the
grant thereof arrange to keep the following as specified by Central Electricity
Authority.
(a) Adequate number of copies of the licence printed;
(b) Adequate number of maps prepared showing the area of activity or area
of supply as specified in the licence;
(c) a copy of such licence and maps for public inspection at all reasonable
times at his head office, at his local offices (if any) and at the office of
every local authority within the area of activity as the Commission may
specify in this regard;
(2) Every such licensee shall, within the aforesaid period of thirty days, supply free
of charge one copy of the licence and the relevant maps to every local authority
within the area of activity and shall also make necessary arrangements for the
sale of printed copies of the licence to all persons applying for the same, at a
price not exceeding normal photocopying charges thereof.
15. Amendment of Licence
(1) The Commission may of its own motion or on an application made by the
licensee or otherwise make such alterations and amendments in the terms and
conditions of licence if the Commission is of the opinion that the public interest
so requires:
Provided that before ordering any alterations and amendments in the terms and

conditions of the licence, proposed to be made otherwise than on the

application of the licensee, the Commission shall publish a notice in two such daily

newspapers as it considers necessary with the following particulars, namely:-

a) name and address of the licensee;

b) alterations and modifications proposed to be made;
c) grounds for such alterations and modifications; and
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 d) statement inviting suggestions, if any, on the proposal for
consideration of the Commission within the time specified in the
notice.
(2) The procedure specified in regulation 7 shall mutatis mutandis be applicable in
case the licensee makes an application for any alteration of or modification to the
terms and conditions of the licence.
(3) Where the licensee has made an application proposing any alteration and
modification of its licence, it shall publish a notice of such application, with the
following particulars, namely:-
a) name of the applicant;
b) that an application for alteration and modifications has been made
before the Commission;
c) details of alteration and modifications proposed in the application,
d) reasons for seeking such alterations and modifications;
e) a statement that the application made before the Commission has been
posted on the web site and can also be inspected in the office of the
applicant;
f) a statement that any suggestion to the proposal for alteration and
modifications made in the application may be submitted to the Secretary
of the Commission within one month of publication of the notice;
Note: For the purpose of this regulation and Clause 16, the term licensee
does not include the deemed licensee.

16. Revocation of Licence

(1) The Commission may revoke the licence, in any of the following
circumstances, namely:-
a) Where the licensee in the opinion of the Commission, makes willful and
prolonged default in doing anything required of it by or under the Act, or the
Rules or the regulations framed pursuant to the Act;
b) Where the licensee breaches any of the terms and conditions of its licence;
c) Where the licensee fails, within the period fixed in this behalf by its licence
or any longer period which the Commission may allow therefor, to show to

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 the satisfaction of the Commission, that it is in a position fully and efficiently
to discharge the duties and obligations imposed on him by its licence;
d) Where in the opinion of the Commission the financial position of the licensee
is such that it is unable to fully and efficiently discharge the duties and
obligations imposed on it by its licence;
e) Where licensee has failed or neglected to undertake transmission in
electricity;
f) Where the licensee fails to submit the information as required under these
regulations;
g) Where the licensee breaches any of the terms and conditions of
transmission service agreement during the construction or operations phase;
Provided that the licence shall not be revoked except after an
enquiry by the Commission in accordance with principles of natural justice,
and unless the licensee has been given not less three months notice in
writing stating the grounds for revocation of licence and considering the
cause shown by the licensee within the period of that notice against the
proposed revocation:
Provided further that the Commission may, instead of revoking the
licence, permit the licence to remain in force subject to such further terms
and conditions as it thinks fit to impose, and any further terms and
conditions so imposed shall be binding upon and be observed by the
licensee and shall be of like force and effect as if they were contained in the
licence.
(2) When the licensee makes an application for revocation of the licence and the
Commission is satisfied that public interest so requires, the Commission may
revoke licence, on such terms and conditions as it thinks fit.
(3) The Commission shall serve a notice of revocation upon the licensee and fix a date
on which the revocation shall take effect and shall simultaneously specify how
and by whom the obligations under the licence are to be discharged after such
revocation.
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 (4) If the Commission at any stage is satisfied that the project has been abandoned
by the licensee thereby affecting its construction, operation or maintenance, the
Commission may direct the Central Transmission Utility or any other person
found suitable by the Commission, to immediately take over construction,
operation or maintenance of the project as an interim measure pending
finalization of proceedings for revocation of licence and sale and vesting of
utilities of the licensee in accordance with sections 20 and 21 of the Act.
17. Payment of Fees
(1) The licensee shall pay an Initial licence fee as may be specified within 30 days, or
such other period as the Commission may allow after the commencement of the
licence.
(2) For each subsequent year that the licence remains in force, the licensee shall, pay
to the Commission Annual licence Fee as specified in the APERC (Fees) Regulation,
2005.
(3) Where the transmission licensee fails to pay any licence fee due under sub-clause
(a) or (b) above by the due dates:
a) The t ransmission licensee shall be subject to proceedings for the
recovery of the fees; and
b) The Commission may revoke the transmission licence pursuant to the
provisions of the Act.
Provided that nothing contained in this clause shall be deemed to discharge
any liability that the transmission licensee may be subject to under the Act or any
other law for the time being in force.
CHAPTER 4

TRANSMISSION CHARGES

18. Determination of Transmission Charges

(1) In case the licensee has been selected for implementation of the project in
accordance with the guidelines for competitive bidding, the transmission charges
shall be adopted by the Commission in accordance with Section 63 of the Act.
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 (2) In all other cases, the transmission charges, incentive, or disincentive and other
charges shall be determined in accordance with the terms and conditions for
determination of tariff specified by the Commission under Section 61 of the Act
and in force from time to time.
19. Impact of Change of Law on Transmission Charges
In case the licensee has been selected for development of the project in
accordance with the guidelines for competitive bidding, impact of change of law
on the transmission charges shall be subject to the provisions made in the
agreements.

CHAPTER- 5
GENERAL CONDITIONS OF THE TRANSMISSION LICENCE
20. Obligations of Transmission Licensee

(1) The licensee shall comply with the Regulations, orders and directions issued by the
Commission from time to time and shall also act in accordance with the terms and
conditions of this licence, except where the transmission licensee obtains the
approval of the Commission for any deviation there from.
(2) The licensee shall plan and operate the Transmission System, so as to ensure that the
Transmission System is capable of providing an efficient, co-ordinated and
economical system of Transmission. In particular, the licensee shall plan and develop
its Transmission System in accordance with the Transmission System Planning and
Security Standards as notified by the authority under the Act together with the State
Electricity Grid Code as specified by the Commission.
(3) The licensee shall not commence any new provision of services to third parties for
the transportation of electricity through the licensees Transmission System, except
with the general or special approval of the Commission.
(4) Standards of Performance: The licensee shall comply with the Standards of
Performance Regulation issued by the commission under sub-section (2) of section
57 of the Act.

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21. Compliance

(1) The l icensee shall comply with the Act, Reform Act, the Grid Code, Standards
specified by Central Electricity Authority (CEA) on (i) Grid Standards Regulations,
2010 (ii) Installation and Operation of Meters, Regulations, 2006 (iii) Technical
Standards for Connectivity to the Grid, Regulations, 2007 (iv) Measures Relating
to Safety and Electric Supply, Regulations, 2010 and (v) Technical Standards for
Construction of Electrical Plants and Electric Lines, Regulations, 2010 and Rules,
Regulations, Orders and Directions issued by the Commission from time to time;
(2) The l icensee shall duly comply with the orders and directions issued in
discharge of their functions by the National Load Despatch Centre, Regional Load
Despatch Centre and the State Load Despatch Centre and other statutory
authorities;
(3) The licensee shall coordinate with distribution licensees in the State, the Regional
Power Committees, the Regional Load Despatch Centres/ State Load Despatch
Centres and Central Transmission Utility/State Transmission Utility and/or the
generating companies, as may be required, relating to the licenced Business;
(4) The licensee shall pay the licence fee specified under this Regulation in
accordance with the time-schedule specified hereunder;
(5) The licensee shall pay such fee as may be specified by the Commission to the
State Load Despatch Centre;
(6) Where the licensee fails, omits or neglects to undertake any transmission
activity for four consecutive quarters, the transmission licence shall be subject
to revocation in accordance with the provisions of the Act;
(7) The licensee shall not enter into any agreement leading to abuse of its
dominant position, if any, or enter into a combination which is likely to cause or
causes an adverse effect on competition in the electricity industry;
(8) The licensee shall maintain up-to-date records of its customers and the
transactions undertaken by it with other parties and shall provide the same to
the Commission as and when it is required to do so;

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 (9) The licensee shall establish adequate communication facilities such as telephone,
fax, computer and internet facilities before undertaking transmission;
(10) The licensee shall render all assistance to any person authorised by the
Commission to regulate or to assist in the carrying out of the transmission
licensees duties.

22. Activities of the Licensee

(1) The State Transmission Utility shall duly discharge the duties under section 39 of
the Act and being a transmission licensee shall also discharge the duties
specified under Section 40 of the Act.
(2) The licensee shall duly discharge the duties of the licensee specified under
Section 40 of the Act.
(3) The licensee shall provide non-discriminatory open access to the transmission
system for use of licensees and generating companies including captive
generating plants and consumers in accordance with the laws, rules and
regulations for the time being in force, subject to availability of transmission
capacity in the transmission lines and, in the case of use of such transmission
system for supply of electricity to consumers, subject to payment of
surcharge to meet the current level of cross subsidy as envisaged in Section 40
read with sub-section (2) of Section 42 of the Act.
23. Prohibited Activities
The licensee shall not enter into any contract or otherwise engage in the business of
trading of electricity:
24. Assignment of Licence

In case of default by the licensee in debt repayment, the Commission may, on an

application made by the lenders, assign the licence to a nominee of the lenders.
25. Other business
The licensee may, with prior intimation to the Commission, engage in any other business
for the optimum utilization of its assets. Where the l icensee engages in such other
business, it shall ensure that:

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 (1) the licenced Business is not prejudiced and/or adversely affected in any
manner by the carrying on of the other business;
(2) the transmission assets of the licensee are not encumbered to support the other
business;
(3) the licenced business does not subsidize the other business;
(4) if there are no investments involved in the other business, a maximum of 25%
of the profit earned by the licensee from such new business, after meeting all
reasonable expenses including corporate tax towards this income, may be
retained by the licensee in that business, and the balance shall be used
towards reducing its charges for transmission and wheeling to its customers;
(5) if the licensee makes an additional investment for the purpose of the other
business, the licensee may charge the new business a fee for making use of the
transmission assets, which shall be not less than 75% of the fee which such new
business would have paid for similar assets/services from an independent
agency/company, and the fee so collected may be used towards reducing its
charges for transmission and wheeling to its customers;
(6) separate accounting records are kept in respect of such activities as if they
were carried on by a separate company, so that the revenues, costs, assets,
liabilities, reserves and provisions of, or reasonably attributable to each such
other business are separately identifiable from those of the licenced business;
and
(7) the assets used in the transmission system for the purpose of the other
business are not transferred without the prior approval of the Commission.
26. Accounts and Audit
(a) The licensee shall:
(1) maintain separate information and statement of accounts for the licenced
business and any other business;
(2) maintain the statement of accounts in such form and containing such
particulars as may be specified by the Commission and till such time as these
are specified by the Commission, the accounts shall be maintained in
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 accordance with the Companies Act, 2013 (Act No. 18 of 2013) as amended
from time to time, where such Act is applicable;
(3) keep the accounts of the licenced b usiness separate from any other
business carried on by the licensee, whether licenced or otherwise;
(4) prepare on a consistent basis, from such records, Accounting Statements for
each financial year comprising a profit and loss account, a balance sheet and a
statement of source and application of funds together with notes thereto and
showing separately the amounts of any revenue, cost, asset, liability,
reserve, or provision which has been either:

a) charged from or to any other business together with a description of

the basis of that charge; or
b) determined by apportionment or allocation between the various
business activities together with a description of the basis of the
apportionment or allocation;
(5) provide, in respect of the Accounting Statements prepared in accordance
with foregoing clauses, a report by the Auditors in respect of each year, stating
whether in their opinion the statements have been properly prepared and give
a true and fair view of the revenue, costs, assets, and liabilities, reserves
reasonably attributable to the business to which the statements relate.

(6) submit to the Commission copies of the accounting statements and Auditors
report not later than six months after the end of the year to which they relate.

27. Inspection of Accounts

Any person authorised by the Commission shall be entitled to inspect and verify the
accounts of the licensee at any reasonable point of time and the licensee shall be
under obligation to render all necessary assistance to the person so authorized for
inspection of accounts.

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 28. Provision of Information
(1) The licensee shall furnish to the Commission, without delay, such information,
documents and details related to the licenced business or other business of the
licensee, as the Commission may require from time to time.
(2) Where information is required by the Commission under clause (1) above, it
shall be furnished in such form as may be specified by the Commission.
(3) The licensee shall submit such information, as may be called for from time to time
by the Commission or the State Load Despatch Centre, in order to fulfill
responsibility of supervision and control over the Intra-State transmission
system entrusted under the Act.
Provided that the report sent to the State Load Despatch Centre shall be placed
on the website of the licensee or any other authorised website.
29. Prudential Reporting
The licensee shall, as soon as practicable, report to the Commission:
(1) any change in major shareholding, ownership or management of the licensee.
(2) any proceedings initiated by one or more of the parties signing the agreement for
interpretation, amendment or termination of the agreement.
30. Major Incident
(1) The licensee shall notify the Commission of any Major Incident affecting any part of
the transmission or distribution system, including generator interconnection
facilities, which has occurred and shall,
(a) submit a report giving full details of the facts of the incident and its cause.
The Commission at its own discretion may require the submission of a
report to be prepared by an independent person at the expense of the
licensee.
(b) give copies of the report to the Commission and to all parties involved in
the Major Incident.
(2) The decision of the Commission as to what is a Major Incident shall be final.
(3) Besides taking action for violation of the Regulations, the Commission shall be
entitled to require the licensee to file a report of any Major Incident in

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 accordance with clause (a) above in any situation where the Commission reasonably
believes a Major Incident has occurred but has not been reported by the licensee.
31. Business Plan
(1) The licensee shall submit a Business Plan within three months of the licence coming
into force, for such period as the Commission may direct, and shall update such plan
annually. The business plan shall contain year-wise load growth, year wise
transmission loss reduction proposal and specific action plans, metering plan for
metering interface points, investment plan as detailed in Clause 32 herein,
treatment of previous losses, debt restructuring plan, cost reduction plan, projected
profit and loss account, projected balance sheets, projected cash flow statements
and projected important financial parameters.
(2) The Commission may require the licensee to intimate, by the end of the first quarter
of each financial year, the progress made in implementing the business plan of the
previous financial year indicating the differences between actual implementation
and the business plan approved by the Commission.
32. Investments
(1) The licensee shall duly comply with any regulations, guidelines, directions and
orders that the Commission may issue from time to time in regard to investments
to be made in the transmission business.
(2) The licensee shall make the investments in a prudent manner, being guided by
the duty to build, maintain and operate an efficient, co-ordinated and economical
transmission system in the State.
(3) The licensee shall submit to the Commission a five-year rolling investment plan,
as a part of the business plan under clause 31, giving details of investment
schemes to be undertaken during the concerned period for the approval of the
Commission.
(4) The licensee shall submit long term investment plan for 10 years in which, the
licensee shall furnish a five-year rolling investment plan, as a part of the business
plan under clause 31, giving details of investment schemes to be undertaken
during the concerned period for the approval of the Commission.

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(5) After expiry a year in the investment plan, the licensee shall supplement one year
detailed plan for succeeding fifth year from that acting year and long term plan
for the succeeding 10th year from that acting year, by 31st December of every
year, such that a long term investment plan for 10 years in which, a five (5) year
detailed plan would be in place at any point of time.
(6) The investment plan shall be in accordance with Load Forecast and Demand
Forecast. The approach for making investment plan should be bottom-up
method, i.e., the investment plan should be prepared based on area wise load
and demand forecast made by distribution licensees.
(7) For the purposes of the Load and Demand Forecasts and investment plan, the
year can be a calendar year or Financial Year (Financial year shall begin on April
1st and end on 31st March) as approved by the Commission from time to time.
Each licensee shall submit its Load and Demand Forecasts along with detailed
investment plan to the Commission in the month of January of each year, and/or
at such other times as the Commission may require.
(8) The licensee shall make any investment under any scheme or schemes except in
an economical and efficient manner and in terms of this Regulation and in
accordance with the Regulations, guidelines, directions and orders the
Commission may issue from time to time.
(9) The Commission may cause verification of prudence of investment by appointing
any of its officer(s) or by appointing third party. If at any point of time, the
Commission arrives at a conclusion that the investment made is not prudent with
reference to a particular scheme or schemes, the Commission may disallow
whole or part of the investment based on its usefulness and will be recovered in
the subsequent tariff orders, if the investment was built in the tariff.
(10) The licensee shall promptly notify the Commission of all the Investments by 31 st
March of every year pertaining to the transmission system which the licensee
proposes to implement for subsequent Financial Year together with relevant
details in brief, including the estimated cost of such investment schemes that are
in line with the investment plan. The licensee shall furnish to the Commission
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 such further details and clarifications as to the investments proposed, as the
Commission may require from time to time.
(11) The licensee shall submit to the Commission, an investment plan, as a part of the
business plan under clause 31 above, giving details of investment schemes to be
undertaken during the concerned period for the approval of the Commission.
(12) The licensee shall demonstrate to the satisfaction of the Commission that:
(a) there is a need for such investments in the transmission system as are
proposed in the investment plan; and
(b) the licensee has examined the economic, technical, system and
environmental aspects of all viable alternatives to the proposal for
investing in or acquiring new Transmission System assets to meet
such need.
(13) The licensee shall intimate, by the end of the first quarter of each financial year,
(a) the annual investment plan with details of investment schemes to
be carried out during the financial year; and
(b) the progress made in implementing the annual investment plan of the
previous financial year indicating the differences between actual
implementation and the investment plan approved by the
Commission.
(14) The licensee shall not make any Investment outside of the proposals in the
investment plan, without the express permission of the Commission.
Provided that if on account of unforeseen circumstances the licensee is required
to make investment in a scheme, which does not find a place in the annual
investment plan, the licensee may do so. Provided for the purposes of
considering such investment while determining the tariff, the licensee shall
satisfy the Commission that the investment was required for the licenced
business and such investment was made in an efficient, co-ordinated and
economical manner.

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33. Rights of the Licensee
(1) The licensee may erect and commission overhead transmission lines,
lay transmission cables and construct substations in accordance with the
transmission plans in order to fulfill the conditions stipulated in the licence.
The licensee shall comply with the safety regulations issued by the Central
Electricity Authority and relevant laws under Section 67, 68 and 69 of the Act
in acquisition of land for lines and substations and while executing works.
(2) A licensee may install an overhead line, subject to the prior approval of the
Appropriate Government.
(3) The licensee shall inform the Commission and STU whenever construction
work on a new transmission component is commissioned.
34. Investigation of certain matters by the Commission
(1) The Commission may, on being satisfied that a licensee has failed to comply
with any of the conditions of the licence or has failed to comply with any of the
provisions of the Act, Reform Act, or rules or regulations made thereunder, at
any time, by order in writing, direct any person (referred to as Investigating
Authority) specified in the order to investigate the affairs of any licensee and to
report to the Commission on any investigation made by such Investigating
Authority.
(2) The Investigating Authority shall conduct the investigation in accordance
with the provisions of the Act.
(3) On receipt of investigation report from the Investigating Authority, the
Commission may, in accordance with the provisions of the Act and after giving
such opportunity to the licensee to make a representation in connection with
the report as in the opinion of the Commission seems reasonable, by order in
writing-
(a) require the licensee to take such actions in respect of any matter arising
out of the report as the Commission may think fit; or
(b) cancel the licence.

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 (4) The Commission may also take any other action in accordance with the
provisions of the Act.
35. Provisions applicable to Deemed Licensees
The general conditions of Transmission Licence specified in this Regulation shall be
applicable to a deemed licensee under the first, second, third and fifth proviso to
Section 14 of the Act.

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 CHAPTER - 6
MISCELLANEOUS
36. Procedure for Securing Compliance of Terms and Conditions of Licence

(1) Where the Commission, on the basis of material in its possession is satisfied
that the licensee is contravening, or is likely to contravene, the terms and
conditions of licence, it shall serve a notice to the licensee narrating the terms
and conditions of licence contravened or likely to be contravened by him to
seek its explanation.
(2) The notice may be served on him by delivering the same at the registered office
or at the usual or its last known place of residence or business, either through
registered post or speed post or by hand delivery through a messenger or
publication in the newspaper where the Commission is satisfied that it is not
reasonably practicable to serve the notice on the licensee through registered
post/speed post or by hand delivery or in any other manner as considered
appropriate by the Commission in the facts and circumstances of the case.
(3) The Commission if it considers that it is necessary to bring the matters to the
attention of persons affected or likely to be affected by such contravention, shall
publish a notice in one or more newspapers specifying the terms and conditions
contravened or likely to be contravened by the licensee to invite suggestions
from such persons.
(4) The licensee or the persons affected or likely to be affected by the contravention
of the terms and conditions of the licence by the licensee may file their
objections or suggestions within 30 days from the date of receipt of notice
under clause (1) or publication of notice in the newspapers under clause (3), as the
case may be.
(5) The Commission shall on consideration of the objections and suggestions
received as aforesaid, pass such order or give such directions as may be
necessary to secure compliance of the terms and conditions of license.

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37. Dispute Resolution
(1) All disputes or differences arising out of or connected with the interpretation of
the licence or the terms and conditions thereof, shall, as far as possible, be
resolved by mutual consultation and reconciliation in accordance with the
agreements.
(2) In the event of failure of the parties to resolve the disputes or differences in the
manner stated in clause (1), these shall be referred by the licensee to the
Commission for adjudication or arbitration, within one month of recording of
such failure.
38. Communication
(1) All communications under these regulations shall be in writing and shall be delivered
either in person to the addressee or its authorised agent, or sent by registered post
or speed post at the registered office or at the usual or last known place of residence
or business of the addressee.
(2) All communications shall be deemed to have been given by the sender and received
by the addressee
a) when delivered in person to the addressee or to its authorised agent;
or
b) on expiry of 15 days from the date of sending the communication by
registered or speed post at the address of the addressee.

39. Power to Relax

The Commission may, when it considers necessary or expedient to do so and for
reasons to be recorded in writing, relax or depart from any of the provisions of this
Regulation.
40. Repeal
Save as otherwise provided in this regulation, the licence number 1/2000 for
Transmission and Bulk Supply granted in OP.No. 3 of 1999 is hereby repealed.

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41. Savings
(1) Nothing in this Regulation shall be deemed to limit or otherwise affect the
power of the Commission to make such orders as may be necessary to meet the
ends of justice or to prevent abuse of process of the Commission.
(2) Nothing in this Regulation shall bar the Commission from adopting a procedure
at variance with any of the provisions of this Regulation, if the Commission, in
view of the special circumstances of a matter or class of matters and for reasons
to be recorded in writing, deems it necessary or expedient in order to deal with
such a matter or class of matters.
(3) Nothing in this Regulation shall, expressly or impliedly, bar the Commission
from dealing with any matter or exercising any power under the Act or Reform
Act, and the Commission may deal with such matters, and exercise such powers
and functions in such manner as it thinks fit.
42. Issue of orders and Practice Directions:
Subject to the provisions of the Act, Reform Act, and this Regulation, the Commission
may, from time to time, issue orders, practice directions in regard to the
implementation of this Regulation, the procedure to be followed and other matters,
which the Commission has been empowered by this Regulation to specify or direct.
43. Power to remove difficulties
If any difficulties arise in giving effect to any provisions of this Regulation, the
Commission may, by general or specific order, make such provisions not inconsistent
with the provisions of the Act, or the Reform Act or the rules, regulations or codes
made thereunder, which appears to it to be necessary or expedient for the purpose
of removing the difficulties.
This Order is signed by the Andhra Pradesh Electricity Regulatory Commission on --/---/ 2017

P. RAMA MOHAN G. BHAVANI PRASAD

MEMBER (PRM) CHAIRMAN

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 Form -1

Application form for grant of Transmission Licence

Particulars of the Applicant

i) Name of the Applicant :

ii) Status : Individual/Partnership form/Private
Limited Company/Public Limited
Company
iii) Address :
iv) Name, Designation & :
Address of the contact
person
v) Contact Tel. Nos. :
vi) Fax No. :
vii) E-mail ID :
viii) Place of :
Incorporation/Registration
ix) Year of :
Incorporation/Registration
x) Following documents are to :
be enclosed
a) Certificate of :
registration/incorporation
b) Memorandum of
Association and Articles of
Association
c) Original Power of Attorney :
of the signatory to commit
the Applicant or its promoter
d) Details of Income tax : PAN:
Registration TAN:

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2) Particulars of the Project for which licence is being sought:
(a) Transmission Lines:
S.No. Name (end- Points Voltage Class Length (Km) Type (S/C or
location) (kV) D/C)

(b) Sub-stations
S.No. Name Voltage Transformer Reactive / capacitive No. of
(location) Level(s) (Nos. and MVA compensation (device with bays
(kV) capacity) MVAR capacity)

(c) Commissioning schedule;

(d) Identified Long-term transmission customers of the Project:
(Agreements or status of discussion on Agreements to be submitted along
with application)
(e) Any other relevant information

3) Levelised transmission charges in case of project selected through the transparent

process of competitive bidding and estimated completion cost of the project in
other cases:
(The levelised transmission charges estimated cost should be indicated in INR, along
with the base month and year in case of the estimated cost)
4) In case applicant has been selected in accordance with the guidelines for
competitive bidding, enclose:
(a) Recommendation of selection by the Empowered Committee
(b) Evaluation report made public by the Bid Process Coordinator.
5) List of documents enclosed:

Name of documents

a)
b)
c)
Date:
Place:
(Signature of the Applicant)
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 Form -2
(Form of Public Notice)

Monogram, if any, of the applicant Name of the applicant

(In bold letters) Address of the applicant (In bold letters)
NOTICE (In bold letters)
(Under sub-section (2) of Section 15 of the Electricity Act, 2003)
(In bold letters)
(Under sub-section (2) of Section 15 of the Electricity Act, 2003) (In bold letters)
(To be published in each of a daily news paper in English
language and two daily news papers in Telugu language having wide circulation in the State
of Andhra Pradesh.)
1. .. (Give here name of the applicant in BOLD LETTERS), having its Registered Office at
..(Give the address in BOLD LETTERS), which is incorporated under the Companies Act,
2013, has made an application before the Andhra Pradesh Electricity Regulatory
Commission, Hyderabad under sub-section (1) of Section 15 of the Electricity Act, 2003 for
grant of transmission licence in respect of the transmission lines, sub-stations and other
assets, the details of which are given below:

Line length / Estimated Completion Cost3 Commissioning Remarks 5

1
Sl. Name of the
2
No. line/Sub- station Capacity or Levelised Transmission Schedule
(location) 4
Charges (If applicant is
selected in accordance with
guidelines for competitive
bidding)

Explanatory note:
These are explanatory notes for submitting above information and not to be included in the public notice
1. In case of a transmission line.
2. In case of a sub-station.
3. The estimated cost in INR along with the base month and year of the estimated cost.
4. Levelised Transmission Charges based on tariff quoted and discount factor and escalation factor used for evaluation by
Bid Process Coordinator.
5.In the remarks column, in addition to any other details that may be considered necessary, it should be clearly
mentioned whether any of the assets will traverse or will be located, wholly are partly, in any cantonment, aerodrome,
fortress, arsenal, dockyard or camp or any of the buildings or place in occupation of the Government for Defence
purposes or up to a distance of 2 km

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2. Complete application and other documents filed before the Commission are available on
the web site of APERC (www.aperc.gov.in) and applicants website..(Give web site
address) for access by any person. The application can also be inspected at the office of the
Company at.. (Give address or reference to address, if given in the monogram) with
(Give name of the person authorised to allow inspection) or Office of the Commission in
accordance with the procedure specified by the Commission.

3. Objections or suggestions, if any, be filed before the Secretary, APERC,

11-4-660, 4th Floor, Singareni Bhavan, Red Hills, Hyderabad 500 004, Give address of the
Office of the Commission), with a copy of the objection(s)/suggestion(s) to the applicant
or its authorized agent, within 30 days of the publication of the notice in the newspaper.

Place: Name and Designation of the

Authorised signatory
Date:

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 Form-3

ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION

HYDERABAD
TRANSMISSION LICENCE
1) The Andhra Pradesh Electricity Regulatory Commission (hereinafter referred to as
Commission), in exercise of the powers conferred under Section 14 of the
Electricity Act, 2003 (hereinafter referred to as Act), hereby grants this licence to
M/s .. (Hereinafter referred to as the licensee) to construct, maintain and
operate. (Name of the Project), more specifically described in the schedule
attached to this licence, which shall be read as a part and parcel of this licence,
subject to the Act, the rules and the General conditions of the Transmission Licence
specified under the Andhra Pradesh Electricity Regulatory Commission
Transmission Licence Regulation, 2017 which shall be read as part and parcel of
this licence.
2) Specific conditions-------- (if any)
3) The conditions such as but not limited to, completion schedule, transfer value,
liquidated damages, Project Implementation Guarantee Deposit, escalation due
to domestic inflation, which are specified in bid documents and provisions in the
Agreements, shall be treated as part of this licence, unless these provisions are
contrary to the Andhra Pradesh Electricity Regulatory Commission Transmission
Licence Regulation, 2017.
4) Wherever there is a contradiction between the General Conditions contained in this
licence and the Agreements, the provisions of this licence, as amended from time to
time, shall apply.
5) This licence is not transferable.
6) The grant of licence to the licensee shall not in any way or manner, restrict the
right of the Commission to grant a licence to any other person within the
same area for the transmission system other than the Project described in the
schedule attached to this licence. The Licensee shall not claim any exclusivity.

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 7) The licence shall, unless revoked earlier, continue to be in force for a period of 25
(twenty five) years from the date of issue.

SECRETARY

Place: HYDERABAD

Date:

SCHEDULE
Project Related Details:

The Project comprises of following elements of the Inter-State Transmission System:

Sl. No. Name of the transmission element Scheduled date of

commissioning

SECRETARY

Place: HYDERABAD

Date:

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